EV Salary Sacrifice Calculator UK 2026/27

EV salary sacrifice offers some of the best tax savings available to UK employees. With a Benefit in Kind rate of just 3% for pure electric vehicles in 2026/27, the savings can be substantial.

EV Sacrifice Details

Enter your salary and EV lease cost

Gross Annual Salary *

Monthly EV Lease Cost (via sacrifice)

EV List Price (P11D value)

Tax Region

Tax Year

Your EV Salary Sacrifice Savings

Based on your inputs

Annual EV Sacrifice—

Income Tax Saved—

NI Saved—

Benefit in Kind Tax (3%)—

Net Annual Cost of EV—

Net Monthly Cost of EV—

Total Annual Saving vs Private Lease—

Estimated Annual Tax + NI Saving

£0

Before Benefit in Kind charge

Estimate only. BiK rates may change. Consult your employer and a financial adviser. Not financial advice.

EV Salary Sacrifice FAQs

Your employer leases an electric vehicle and you sacrifice enough salary to cover the monthly lease cost. The car becomes a company car, so you pay Benefit in Kind (BiK) tax on it. For pure electric vehicles in 2026/27, the BiK rate is just 3% — making the tax charge very low compared to the savings from salary sacrifice.

For pure battery electric vehicles (BEVs), the Benefit in Kind rate is 3% of the car's P11D value in 2026/27. This rate is set to rise gradually in future years, but remains well below petrol or diesel vehicles (which attract up to 37%).

For most higher and basic rate taxpayers, yes. The tax and NI savings on the sacrifice often significantly outweigh the BiK charge. A basic rate taxpayer leasing a £35,000 EV for £400/month could save over £1,500 per year compared to a private lease.

No. EV salary sacrifice schemes are entirely at your employer's discretion. Speak to your HR or benefits team to find out whether your employer offers or is considering an EV scheme.